US Anti-Trust Settlement

5 November 2002

                        THE MORGAN CRUCIBLE COMPANY plc                        

                           US ANTI-TRUST SETTLEMENT                            

The Board of The Morgan Crucible Company plc announces that it has agreed with
the Department of Justice in the United States to settle claims of anti-trust
violations by one of its US subsidiaries in a limited number of carbon brush
and carbon current collector products in the USA during the 1990s. Morgan has
also agreed to two claims of non-cooperation made against it.

The Department of Justice investigation relating to Morgan and its affiliated
companies has now been concluded and it has been agreed that they would be
prepared to accept fines of $11million (approximately £7million) in respect of
both the anti-trust violation and the non-cooperation. Such fines will be
interest free and payable over 4 years with the first payment made during 2003
amounting to $3.5millon (approximately £2.3million). No penalties will be
payable in 2002. A total charge of £12million including the above fines and
associated legal costs will be taken in the 2002 accounts as an exceptional
cost.

During the period under investigation, prices of the products in the USA which
were the subject of the investigation generally fell or remained stable. The
customers affected are limited and Morgan believes that the costs of dealing
with future civil claims, if any, should not be material.

Discussions have been held with the Canadian and European competition
authorities. The European competition authorities have advised that it is
unlikely that any penalties would be payable by the Company. Discussions will
continue with the Canadian authorities but given the very small amount of
business transacted in Canada Morgan believes that the outcome should not have
a material impact on the Group.

Morgan regrets the departure in this limited area from the high standards
maintained in the rest of its businesses. Action has been taken to reinforce
the anti-trust compliance programme worldwide in order to ensure high ethical
practice across all Morgan's businesses.

Enquiries:

Nigel Howard, Acting Group Chief Executive    020 7404 5959 (on 5.11.02)     
                                                                             
Nigel Young, Finance Director                 01753 837000 (thereafter)      
                                                                             
Jon Coles, Harry Chathli, Brunswick           020 7404 5959